Enforcement of private property rights is ordinarily entrusted to the

Refer to Figure 11.2. Suppose that Ca = 40, MPC = 0.8, I = 10. The slope of the consumption function is

A) 0.1. B) 0.2. C) 0.8. D) 0.9.

Which of the following could be evidence of a market failure?

A) Resources in an economy are not fully utilized. B) The market price of a product is above the average cost of production. C) There are only a handful of firms competing against each other in an industry. D) Market prices do not reflect true production costs.